XYZ COMPANY

PROFIT AND LOSS ACCOUNT FO

(Amount in Rs)

Particulars
REVENUE
Sales
EXPENSES
Direct Expenses
Raw materials Consumption
Labour Charges
Other overhead expenses
Depreciation Expenses
Cost of goods sold
Gross Profit
Admin & Sales Expenses
General Expenses
Interest on Bank OD
Printing & Stationary
Selling and Dis Expenses
Total Expenses
Operating Income
Other Income
Interest On Fixed Deposits
Other Income
Profit Before Tax
Income tax
Net Profit
SS ACCOUNT FOR THE YEAR ENDED

2015 2016 2017

9,167,041 11,057,322 14,102,864

1,833,408 2,432,610.84 2,538,515.52

641,693 774,013 987,200
733,363 884,586 1,128,229
2,150,000 2,675,000 3,632,767
5,358,464 6,766,209 8,286,712
3,808,577 4,291,113 5,816,152

193,330 358,141 331,243

375,000 300,000 225,000
75,825 91,480 105,236
458,352 552,866 705,143
1,102,507 1,302,487 1,366,622
2,706,070 2,988,626 4,449,530

75,000 75,000 75,000

5,000 3,000 7,000
2,786,070 3,066,626 4,531,530
835,821 919,988 1,359,459
1,950,249 2,146,638 3,172,071
XYZ COMPANY

BALANCE SHEET AS ON 31 DEC

(Amount in Rs)

Particulars
ASSETS
1. Current Assets
Cash in Hand
Cash at Bank
Inventories
Accounts Receivable
Bills of Exchange
Prepaid Expenses
2. Investments
Fixed Deposits in Banks
3. Fixed Assets (Net off Depreciation)
Motor Vehicles
Furniture & Fixtures
Machinery and equipment
Land
Buildings
Total Assets
LIABILITIES
1. Current Liabilities
Accounts Payable
Bills payable

Accrued Expenses
Income Tax Payable
Bank OD
2. Long term Liabilities
Term Loans (Long Term)
Total Liabilities
Stockholders Equity
Share Capital
Retained Earnings
P & L Balance
Total stockholders Equity
Total
Note:
Closing Balances as on 31-12-2014
ON 31 DEC

2015 2016 2017 2014

105,855 125,875 98,750

1,595,118 1,487,520 1,196,786
755,251 1,125,110 1,525,411 658,480
2,291,760 2,764,331 3,819,526 2,105,620
465,000 625,000 850,000
275,785 325,525 420,154

1,500,000 1,500,000 1,500,000

1,992,500 1,817,500 2,282,500

664,500 454,500 244,500
1,597,500 832,500 260,623
10,500,000 10,500,000 10,825,000
646,100 1,871,100 2,181,100
22,389,369 23,428,961 25,204,349 20,895,810

534,744 681,868 581,743 728,512

250,000 315,000 385,000

155,200 125,780 175,056

625,571 835,821 919,988
2,500,000 2,250,000 2,000,000

5,000,000 3,750,000 2,500,000

9,065,515 7,958,469 6,561,787

10,000,000 10,000,000 10,000,000

1,373,605 3,323,854 5,470,492
1,950,249 2,146,638 3,172,071
13,323,854 15,470,492 18,642,563
22,389,369 23,428,961 25,204,349
- - -
Total Accounts/ Bills
Assets Inventories Receivables Payables
20,895,810 658,480 2,105,620 728,512
 2015 2016 2017
Gross Profit 3,808,577 4,291,113 5,816,152
Total Revenue 9,167,041 11,057,322 14,102,864

Gross Profit Margin 0.41546416 0.3880788676 0.412409281

42% 39% 41%

Generally, the higher the gross profit margin the better. In case of XYZ Company the Gross Profit Marg
It is not very huge increase but need to check with industry average
A high gross profit margin means that the company did well in managing its cost of
It also shows that the company has more to cover for operating, financing
 Gross Profit Margin

ny the Gross Profit Margin has gradually incresed in the Year 2017 (41%) compared to previous year i.e 2016(39%).

in managing its cost of sales.

r for operating, financing, and other costs.
ar i.e 2016(39%).
 Operating Profit Mar
2015 2016
Operating Profit 2,706,070 2,988,626
Sales 9,167,041 11,057,322

Operating Profit Margin Ratio 0.295196 0.270284794

The Operating profit margin ratio indicates how much profit a company makes after paying for v

The Operating Profit has gradually increased in year 2017 (0.31) compared to previous year 2016

 XYZ company with an operating margin ratio of 31 percent means that for every rupee of incom
This also means that only 31 paise is left over to cover the non-operating expenses.
perating Profit Margin Ratio
2017
4,449,530
14,102,864

0.315505417907

y makes after paying for variable costs of production such as wages, raw materials, etc.
ared to previous year 2016 (0.27). Need to check with Industry Average.

for every rupee of income, only 31 paise remains after the operating expenses have been paid.
ng expenses.
 Net Profit Margin Ratio
2015 2016
Net Profit 1,950,249 2,146,638
sales 9,167,041 11,057,322

Net Profit Margin Ratio 0.212745749 0.194137242

21% 19%

Net Profit Margin ratio is a financial ratio used to calculate the percentage of pr

A higher net profit margin means that a company is more efficient at converting
The Net Profit Margin of XYZ company has increased to 22% compared to
et Profit Margin Ratio
2017
3,172,071
14,102,864

0.2249238878
22%

ate the percentage of profit a company produces from its total revenue
ore efficient at converting sales into actual profit.
ed to 22% compared to previous years
 2015
Net Profit 1,950,249
Total Assets 22,389,369

Return on Asset Ratio 0.0871060278653

9%

Return on assets (ROA) is an indicator of how profitable a company is relativ

As you can see, XYZ company ratio is 13% which is more compared to prev
Return on assets of 13% indicates that it is earning 13 paisa profit for e
 Return on Asset Ratio
2016 2017
2,146,638 3,172,071
23,428,961 25,204,349

0.09162326917 0.12585411351
9% 13%

how profitable a company is relative to its total assets.

3% which is more compared to previous year.

t it is earning 13 paisa profit for every 1 rupee investment in assets
 2015

Net Profit 1,950,249

Total Shareholders equity 13,323,854

Return on Equity Ratio 0.1463727387

15%

The Return on equity ratio or ROE is a profitability ratio that measures the ability of a firm

The ROE ratio has increased to 17% compared to previous years

Return on equity of 17% means for every 1 rupee of shareholde
 Return on Equity
2016 2017

2,146,638 3,172,071
15,470,492 18,642,563

0.1387569316 0.17015208692
14% 17%

asures the ability of a firm to generate profits from its shareholders investments in the company.

ared to previous years

1 rupee of shareholders money it is earning 17 paisa profit
 Return on Investment

Net Profit
Longterm Liabilities+ Shareholders Equity

Return on Investment Ratio

Return on Investment measures the gain or loss generated on an

The ROI ratio has increased to 15% compared to previous years

As you can see, Return on investment is 15% in 2017. This means
This investment was extremely efficient because it increased 15 ti
 2015 2016 2017
1,950,249 2,146,638 3,172,071
18,323,854 19,220,492 21,142,563

0.106432249 0.111684862177 0.150032472411

11% 11% 15%

ss generated on an investment relative to the amount of money invested.

to previous years
n 2017. This means that XYZ company made 15 paise for every rupee that it invested.
se it increased 15 times.